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Press Release

Publish Date: 2/10/2016

Gas Price Affecting Sales Tax

Reduction In Cost Of Gas Leads To 33 Percent Decrease In Sales Tax Derived From Motor Fuels

FONDA - Two weeks ago, the 2015 sales tax revenue numbers were released for all of the counties in New York State by the New York State Association of Counties (NYSAC). In that report, Montgomery County saw the biggest percentage drop from the previous year, in the entire state, falling 6.7 percent to $27.76 million. Over that same period, however, the county had the second highest drop, in the state, in percentage of sales tax derived from the sale of gasoline.

In 2015, Montgomery County saw a nearly 33 percent drop in sales tax derived from motor fuels. That drop from $5.7 million collected in 2014 to $3.8 million last year accounts for nearly all of the $1.9 million decrease in overall sales tax that was realized by the county. Over the last six months of 2015, the price of gasoline fell steadily to an average of around $2 dollars per gallon.

"When we saw the decrease it sales tax, it was concerning, but we had a feeling it was due to the reduced cost of fuel," said County Executive Matthew L. Ossenfort. "After digging deeper and crunching the numbers, it seems that sure enough our reduction in sales tax can almost entirely be associated with that lower cost at the pump."

A significant amount of the county's sales tax is generated from the sale of fuel, both gas and diesel. The two rest stops along the New York State Thruway that are in the county and the truck stop at Exit 28, in Fultonville, account for a considerable amount of revenue from the sale of gasoline.